Question 1

What are the GST slabs in India?

Accepted Answer

India has four main GST slabs: 5% (essential goods and services like packaged food, transport), 12% (processed food, computers, mobile phones), 18% (most services, consumer goods, restaurants with AC), and 28% (luxury goods, automobiles, tobacco). Some items like fresh food, healthcare, and education are exempt (0% GST).

Question 2

What is the difference between CGST, SGST, and IGST?

Accepted Answer

CGST (Central GST) and SGST (State GST) are levied on intra-state transactions and are split equally — so on an 18% GST transaction, 9% goes to the Centre and 9% to the State. IGST (Integrated GST) is levied on inter-state transactions and export/import, and the full rate applies. The total tax burden is the same in either case.

Question 3

How do I calculate GST on an exclusive price?

Accepted Answer

To add GST to a base (exclusive) price: GST Amount = Base Price × GST Rate / 100. Total Price = Base Price + GST Amount. For example, for a ₹1,000 item at 18% GST: GST = ₹180, Total = ₹1,180. SmartaxCalc's GST calculator does this instantly for all slabs.

Question 4

How do I remove GST from an inclusive price?

Accepted Answer

To extract GST from a GST-inclusive price: Base Price = Inclusive Price / (1 + GST Rate/100). GST Amount = Inclusive Price - Base Price. For example, for a ₹1,180 inclusive price at 18%: Base = ₹1,000, GST = ₹180.

Question 5

Who needs to register for GST in India?

Accepted Answer

Businesses with annual turnover exceeding ₹40 lakh (₹20 lakh for service providers, ₹10 lakh for special category states) must register for GST. Businesses involved in inter-state supply, e-commerce, or those paying under reverse charge must also register regardless of turnover threshold.

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What is CGST & SGST?

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